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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Thursday, October 13, 2011

European Contagion Shows In Inversion Of US Financials' CDSs

European Contagion Shows In Inversion Of US Financials' CDSs
Wall Street Journal
This price inversion had been seen before, but changes in the swap market after the 2008 financial crisis were supposed to have made it less extreme. Since Friday, CDS costs on the affected firms have come down, but the CDS price swings show how ...

European Debt Default Insurance Costs Mixed
Wall Street Journal
By Sarka Halas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The cost of insuring European corporate and government debt against default was mixed Wednesday as Slovakia's vote against changes to the European Financial Stability Facility damped the ...

Bonds weaken as Greek default fears ease
Sydney Morning Herald
The Australian bond market opened weaker amid hopes Greece will not default on its debt repayments. At 0830 AEDT on Thursday, the December 10-year bond futures contract was trading at 95.550 (implying a yield of 4.450 per cent), down from 95.660 (4.440 ...

Norway Banks Form First Defense in Credit Crisis, Johnsen Says
BusinessWeek
Concerns over a potential default by Greece and contagion in other debt-ridden nations have helped push the 46-company Bloomberg Europe Banks and Financial Services Index down 26 percent this year. DnB has slumped 24 percent and the Norwegian ...

Default Swaps Punish Westfield Most Since 2009: Australia Credit
BusinessWeek
Credit-default swaps on Sydney-based Westfield's debt climbed 264 basis points this half to 388 basis points on Oct. 5, the highest since May 2009 and the most expensive relative to Australia's benchmark corporate bond-risk index in more than two years ...

A Greek Default on the Cards but the Banks Aren't Listening
Huffington Post (blog)
The markets expect a Greek default and time is running out. However, banks still haven't recognized enough of this loss, highlighting the pent-up risk in the sector. Deep-seated skepticism continues to drive market volatility and this will continue ...

ECB's Trichet Says Greece Should Be Able to Avoid Default
Bloomberg
By Jana Randow - Wed Oct 12 08:08:52 GMT 2011 European Central Bank President Jean-Claude Trichet said Greece should be able to avoid default. “A very large adjustment is necessary in Greece to correct the errors of the past in the greater interests of ...

EU Said to Seek 9% Bank Capital in Response to Fiscal Crisis
BusinessWeek
“The sovereign contagion and the banks are now, whether we like it or not, linked.” He said banks that can't satisfy the new capital thresholds should be banned from paying bonuses and dividends. The EU's move comes after stress tests on its banks ...

Morgan Stanley Credit Risk Plunges as Optimism Grows on Europe
BusinessWeek
Oct. 12 (Bloomberg) -- The cost of protecting against losses on Morgan Stanley debt plunged to the lowest level in three weeks as European leaders signaled progress in halting the region's sovereignfiscal crisis. Credit-default swaps on Morgan Stanley ...

MBA chief economist: Greek default may mean US recession
Housing Wire
by JON PRIOR Mortgage Bankers Association Chief Economist Jay Brinkmann said the stronger European countries such as Germany were unlikely to provide any more assistance for Greece, which would force it to default on its sovereign debt. ...

China: Small Enterprises' Credit Crisis under Control
CRIENGLISH.com
Evening lights shining from surrounding factories shatter the dark silence dominating buildings owned by the Zhengdeli Shoes Company. Piles of unfinished shoes sit the company's warehouse and workshops. A few security guards stand by a gate where ...

Oil shows largest drop since 2008 financial crisis
The Citizen Daily
Oil may fall this week on concern that Europe's economy is showing signs of a slowdown as governments struggle to contain their fiscal crisis and avert a Greek default, according to a Bloomberg News survey. Thirteen of 28 analysts, or 46 per cent, ...

Greece Bailout: Latest Eurozone Move Not Enough to End Crisis
International Business Times
Nonetheless, talk will not go away concerning the possible need to protect banks against an eventual Greek default. The Greek draft budget for 2012, presented in early October, also did not help matters. It projects the deficit to remain at 8.5 percent ...

OECD Gurria: Greece Needs To Be Ring-Fenced To Avoid Contagion
Fox Business
By William Horobin PARIS -(Dow Jones)- A comprehensive crisis solution proposed recently by Germany and France needs to ring-fence Greece to avoid contagion and shore up banks because stress tests conducted earlier this year are losing their ...

Revisiting The PIIGS: Victims Or Perpetrators?
Seeking Alpha
Apart from the Greek and Portuguese public finance situation, capital inflows stopped as a result of the financial crisis, in which a flight to safety became paramount. So yes, the PIIGS are as much victim as perpetrator, and now rather than capital ...

Risk of Contagion in the Global Financial System Rising Rapidly ...
By Editor
Even France, with its S&P AAA rating, is now rated more likely to default than Brazil! [In addition, the U.S. is facing the liklihood of a fiscal policy impasse in Congress that could well lead to a recession. As such, as we see it, the risk of contagion...
MunKnee.com

The Ideological Roots Of The Global Financial Crisis: Lessons For ...
By Norman Girvan
There is general consensus that the current global financial crisis, which originated in the USA, is the most devastating since the Great Depression of the 1930's. Martin Wolf described the unfolding events as the “disintegration of the financial ...
Norman Girvan

XE.com - ECB's Trichet: Greece can avoid default
Greece can avoid bankruptcy if it and European governments stick to their agreements to cut its debt levels, European Central Bank President Jean-Claude Trichet said on Wednesday.
XE Forex News

Jubilee 2012? – my interview on salon.com « Debtonation: The ...
By Georgia Lee
Debtonation: The Global Financial Crisis.... There was not a single international financial crisis between 1945 and 1971 according to the great historian of the financial system, Barry Eichengreen. And similarly, Americans were not burdened ...
Debtonation: The Global Financial Crisis